Cia Hering : Notice to Shareholders - Dividend Distribution

NATIONAL CORPORATE TAXPAYERS REGISTER No. (CNPJ) 78.876.950/0001-71

PUBLICLY-HELD COMPANY

Blumenau - Santa Catarina

NOTICE TO SHAREHOLDERS

PAYMENT OF DIVIDENDS

We hereby notify the shareholders that the Board of Directors of Cia. Hering ("Company"), at a meeting held on October 31, 2018, with the approval of the Annual Shareholders Meeting, approved the distribution of dividends in the amount of R$ 39,995,653.24 (Thirty-Nine Million, Nine Hundred and Ninety-Five Thousand, Six Hundred and Fifty-Three Reais, and Twenty-Four Cents), equal to the amount of R$ 0.2478 per share. The payment of the dividends will be made to the shareholders on November 28, 2018, using as base date for calculation the share status of November 8, 2018, except for the treasury shares. The shares of the Company will be traded "ex-rights to dividends" as from November 9, 2018.

The dividends will be paid through the Depositary Institution of the shares issued by the Company - Banco Itaú S.A., upon automatic credit in the account of the shareholders who have informed to Banco Itaú their Taxpayer ID number (CPF/CNPJ) and their respective bank account. For shareholders who have not provided such information, Banco Itaú shall send the respective notice of payment, which shall be presented in one of its branches, together with information relating to the subject, for the respective credit to be processed, from the 3rd business day after the updating of the data records. For shareholders who have their shares deposited with B3, the dividends shall be paid through their custodians.

Blumenau (SC), October 31, 2018.

Rafael Bossolani

CFO and Investor Relations Officer

Phone: [phone]/4805 email:[e-mail]